Betting Worst Is Over, Steelmakers Spending Again After Cuts
- Excluding China, demand rising and companies have reduced debt
- Mills undergoing ‘cautiously optimistic mood change,’ ABN says
Wood Mackenzie's Griffin on Iron Ore Outlook
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After years of losses, plant closings and job cuts, some of the world’s biggest steelmakers are ready to spend more on their businesses.
Combined capital expenditure planned this year by top producer ArcelorMittal, South Korea’s Posco and Russia’s Novolipetsk Steel PJSC will be up 29 percent to $6.7 billion in 2017, the first increase since 2014, according to estimates by the companies. Increases also are planned by some American and European companies, including U.S. Steel Corp. and Thyssenkrupp AG. Investments will mostly be targeted at expansions in key markets and new technologies.